Thanks Dividend Magic, let me do more reading and research first.

Ya, still taxable no matter what but with maximum loan, chances are after deducting loan interest , you won't have much taxable rental income, if at all. That's why buying prop using cash is a pretty bad idea. So is paying off loans associated with a property .

No sweat bro.

In a nutshell, its a good idea to increase your loan repayment now because loan interest is higher compared to FD's.

guys, is there latest version?

i think this is the main thread,
u can ask ur question here.

Nice. I also still learning new tricks on managing personal finance. I already cut down quite a lot of entertainment but still.

put a portion (10% or more if u can) of ur salary into saving first once u get ur salary.

start tracking ur expenses,
make budget for each category of expenses eg. food-rm1000, entertanment -rm200, etc
spend within the budget.

Haha sure sure

Saving is good but will never be enough. Saving alone will still result in significant 'losses' in the long run because in the current economic climate especially here in Malaysia where our money is being 'eaten' by high inflation and rising cost of living.

So even though we may be saving but our purchasing power is drastically reducing daily. The only way to offset this is by growing your savings by prudent investments which give you a min return of 10% per annum.

Bro,
Wat is the reasonable inflation numbers to use when prepare personal budget?

Well just 10% of salary is not enough..
U need to make sure the 10% can give good return..
If not, our inflation & cost of living will kill it..

10%

guard figure for disposal (unplanned) budget is at least 6 months of current salary.

10% is extremely High
It's impossible to grow our asset class by tat numbers annually
In addition, the present economic conditions is very challenging for fund managers n ordinary Ppl like us to achieve tat %

true, just giving example how to get started in personal financing,
u wont be asking him to invest straight up if he dont have any saving/emergency fund eh

yes, of course 10% is small, but its a good start

malaysia inflation rate is less than 4% in 2016

http://www.tradingeconomics.com/malaysia/inflation-cpi

but of course the data is there, but how we actually feel about the inflation rate higher

This post has been edited by deadravel: Nov 30 2016, 08:55 AM

4% inflation rate is such BS..
It's way higher than that..
I feels like its 10% above..

U need to know that in Malaysia (unlike many developed countries), the inflation rate provided is given as an average for the whole country. That means in lay man's terms, comparing prices of essential goods in the most expensive place in Malaysia vs the most ulu place in East Malaysia. Of course the final figure is going to be crap.

In many developed countries in Europe for example, u can get the country wide inflation rate and also inflation in many key cities. Plus, in Europe, price control is enforced very strictly. Even for market determined prices, there are numerous watch dogs to keep a close eye in ensuring retailers and traders don't purposely hike up prices. In Malaysia such enforcement is lax.

It is NOT extremely high and surely NOT impossible. It only becomes impossible when ure only thinking of investing in mutual funds. There are many investments out there which provide potentially higher returns albeit with higher risks. If one can manage & spread their risk efficiently, its not impossible to achieve ROI of >10% per annum.

In challenging economic times, good investors think out of the box. Following the conventional doesn't work in these times.

Honestly speaking, for a long term annual inflation rate, 3.3% to 3.5% is a reasonable figure. We as financial planners do not use even 4% because imagine if we were do calculation for retirement for our clients for a period of 15 to 20 years, the result will be there no matter what the client do, there will never be enough for retirement, ever.

We are talking about long term inflation rate on the main/common basket of food, not just specifically on teh tarik or GST or specific item. Hope this clarifies and helps.

Bro,
Mind to share some investmnets tat delivers > 10% ROI here or via pm